Conitinued - Understanding Cryptos and how to turn it into a Passive Income stream (Final)

Dear Steemians,

In case you missed my other article you can read that here.

Surely we all wish for higher interests. But still the highest staking coin isn’t always the best pick and actually many very high staking coins (balls and tek) have gone to almost zero in price. Why does that happen? Because the inflation is so high that more btc is needed to buy up the newly minted coins introduced to the ecosystem,just to keep the price stable. So with every batch of newly minted coins , more btc is needed to buy it up in,just to keep the chain running. Those who are in early enough might make crazy gains, those who come late lose much of their investment. Please note: This warning only applies for VERY high staking coins! I will give examples for different categories of POS coins further down.

Do you remember what I wrote in the beginning of this article? That traders need to understand the staking rate and inflation of a coins’ ecosystem, Because high staking POS coins are successful even if the price just stays stable or goes a bit down. For instance if you stake a coin with an APR of 500%: Even if the price drops by 30% that year, it wouldn’t even hurt. infect you would have found a great source of passive profits.
Buying high staking POS coins without minting them puts you at a huge disadvantage versus those who stake. They would be able to sell at a 20% loss from their entry price and still be able to make fantastic profit.
But another fact that should be considered: The APR is not the actual inflation on the whole ecosystem. This is because not all coins in the ecosystem are staking. Let’s take CBX as an example: The APR is around 7.5% right now which is not too high compared to some other POS coins but still very high if you consider that CBX is a very solid project with a great future perspective. But what you should know is that only about 26.4% of all CBX in circulation are actually staking.check here. So, the inflation on the entire ecosystem is much smaller, in this case 7.5/26.4, meaning 1.875%. This is very small for an outstanding project like that. It will not be difficult to get even much more new money into the CBX ecosystem so I expect a price rise and good staking rewards what makes CBX one of my favourite POS coins(for CBX it's called PosP).
Before I start on other examples of different categories of POS coins I’d like to add one point: There usually is no certain amount of coins you need to stake but if you have too little coins in your wallet your stake weight will be low and you will need to wait much longer time till you get rewarded. It doesn’t change your APR but it increases the periods of time between your payouts and that effects your compounded interest. Some coins even pay out several times a day!
next I will try to show afew POS coins and give examples. All the coins mentioned I am or was holding myself. Please show me other coins in the comments!

Solid projects with great perspectives and a significant APR

A coin that perfectly fits into that category is CBX. I’d hold it even without staking rewards but with additional staking rewards of 7.5% this is just a no-brainer. The inflation of CBX is 1.875% is tiny for a strong project with a market cap that is still quite small so the price has much room to grow! For this coin it also really is an advantage when staking keeps you from overtrading. I expect the market cap to be several hundred millions in the next 2 years and this is quite a conservative expectation.

To be continued ….

Appendix A

It took me many hours to do all the research for this article and even more hours to write it. I’d really appreciate upvotes or resteems , if the provided information was kind of useful for you. Please donate

Here are some of my addresses:
CBX 5To9Qkf8642rp4xhNC4WLnFr9draQZiBpM
ETH 0xdF15E9399B9F325D161c38F7f2aFd72C11a19500
BTC 17mMPpySrRFECZRCJGSitcTGmoPL6egFLw
NEO ARaEQe3iMLHLqspx8hRaqMYcq4pbeNkR4B

CBX(POSP)-
ROI-
POS -
APR -
PART 1
PART 2
PART 3